Finolex Industries Limited has informed the Exchange about Transcript
FINPIPE · price
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Finolex Industries reported a weak Q1 FY26 with total income from operations falling 9% YoY to INR1,043 crores due to lower PVC realizations, though pipes & fittings volume grew 2% to 92,129 MT. EBITDA dropped sharply to INR94 crores (vs INR207 crores YoY) and EBITDA margin slipped to ~9% from ~18% in Q1 FY25, mainly due to declining PVC prices. PAT stood at INR97 crores versus INR505 crores (which included an exceptional gain of INR339 crores). The company has INR2,533 crores of net cash on its books, capacity of 5,20,000 tons, and is adding another 50,000 tons in FY26. Management noted that July has already moved to high single-digit volume growth and the company is targeting double-digit volume growth for the year. Capex guidance for FY26 is around INR150 crores, and the company is hopeful the anti-dumping duty circular may come by October, which could support a INR3-6 price hike.
Near-term pressure on margins and revenue persists due to weak PVC spreads, but management is guiding for a recovery to higher double-digit EBITDA margins for the year if prices stabilize, supported by expected anti-dumping duty benefits. Shareholders may be disappointed by the lack of clarity on cash deployment despite the strong INR2,533 crore cash pile.